Import scrap prices for India have been stable since late last week and have edged up slightly compared to early last week amid tight supplies, but trading has been extremely slow in the local market amid steadily weakening rebar prices and doubts over the sustainability of high prices and with a possible correction round the corner, SteelOrbis learned from trade and industry circles on Wednesday, November 29.
Ex-Europe containerized shredded scrap is at $415/mt CFR, and somewhat higher offers at $415-418/mt CFR Nhava Sheva port in the west have not been accepted by buyers. Though unconfirmed by other market participants, one trader said that a trade for 1,000 mt of ex-Germany shredded scrap was concluded at $415/mt CFR Kandla port in the west.
Offers for HMS I/II (80:20) scrap in containers were reported in the range of $392-398/mt CFR compared to $390-395/mt CFR a week ago. But at least one deal was heard at $385/mt CFR for West African origin, indicating that the real tradable level is lower.
According to the sources, there was no appetite for high-priced imported scrap among secondary mills amid steadily falling rebar prices and the increase in production costs, and mills have been unwilling to take on additional risks, including currency devaluation, in concluding import trades.
“Buyers are also staying away from imports, perceiving prices to have been on a sustained uptrend and are not sustainable, and that a correction is imminent. Winter months in the west will slow down demand and this may be the trigger for a correction. Local buyers can well wait and watch,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“On the other hand, we hear from US recyclers that scrap prices still have some headroom for a rise. But the construction grade steel market across the sub-continent remains very weak and we do not see much buying, at least until the New Year,” he said.